1 FM SETS TRANSFER PRICING AUDITS AS ONE OF

FM SETS TRANSFER PRICING AUDITS AS ONE OF ITS 2016 PRIORITIES
On 18 December 2015, the Finance Ministry (FM) released their transfer pricing action plan for 2016.
According to FM's website, auditing transfer prices for compliance with the arm's length principle will
be one of the priorities for tax administration in 2016. Audits are expected to focus primarily on
purchase costs incurred by Polish taxpayers in transactions with their foreign associates, including
especially those involving services and intangibles.
FM announced implementation of organisational changes and allocation of appropriate resources in
the nearest future to enhance their audit efficiency. FM's plan is another step in a series of measures
intended to provide for tighter revenue controls and prevent cross-border profit transfers.
Taxpayers engaging in related party transactions that are not at arm's length are encouraged by
Polish FM to adjust their tax returns for periods between 2011 and 2015 until the end of first quarter
2016. Those who do so will be rewarded with a preferential rate of default interest at half the standard
rate.
FM announces that all transactions made by Polish taxpayers in late 2015 will be audited already in
second quarter 2016. Therefore, we advise those taxpayers whose group transfer pricing policies
require end-of-year pricing adjustments to achieve specific margin levels (e.g. toll manufacturers
adjusting their budgeted costs to reflect actual expenses) to take immediate action to ensure they
have a transfer pricing documentation that conforms with Article 9a CIT Act and properly evidences
compliance with the arm's length principle.
If this issue pertains to your business and you are interested in our assistance, please contact your
WTS&SAJA consultant or our office.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Delta Building, 4th floor
ul. Towarowa 35
61-896 Poznań
tel. (+48) 61 643 45 50
fax. (+48) 61 643 45 51
Warsaw Office
CENTRAL Tower, 22nd floor
Al. Jerozolimskie 81
02-001 Warszawa
This Newsletter provides general information and is designed to keep you up-to-date with changes in tax law, tax rulings and
interpretations, case law development and interesting commentaries.
Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions that follow from the contents hereof.
Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Delta Building, 4th floor
ul. Towarowa 35
61-896 Poznań
Poland
P +48 61 643 45 50
F +48 61 643 45 51
[email protected]
www.wtssaja.pl
Managing Partner:
Magdalena Saja
Tax ID: 778-141-77-66
Poznań District Court for Poznań Nowe Miasto
and WiIda, 8th Commercial Division
KRS 0000206176
Share capital: 200 000 PLN
1